Business
Anatolia's Copler senior debt facility approved at US$62.5 million
TORONTO, Jan. 12 /CNW/ - Anatolia Minerals Development Limited ("Anatolia" or the "Company") (TSX...
About this update from Allied Strategic Resources Corp
[{"type":"text","content":"\n\n\n\nTORONTO, Jan. 12 /CNW/ - Anatolia Minerals Development Limited\n("Anatolia" or the "Company") (TSX:ANO) announces that Bayerische Hypo- und\nVereinsbank AG, a member of UniCredit Group ("HVB") has received final credit\napproval to fully underwrite and provide US$62.5 million in senior project\ndebt (the "Debt Facility") for the Company's Copler Gold Project in Turkey.\n\n\nThe Debt Facility has a six year term. There is no penalty for early\nrepayment. Interest is variable based on the U.S. Dollar LIBOR rate plus\nmargin. The Company may elect to fix the interest rate through an interest\nrate swap facilitated by HVB.\n\n\nClosing of the Debt Facility will occur upon finalization of\ndocumentation, which is largely complete. Drawdown of the Debt Facility is\ncontingent upon customary conditions precedent. Management anticipates all\nconditions precedent should be completed by the second quarter 2009, clearing\nthe way for drawdown. Among the required conditions precedent, the Company\nwill be required to fully fund the project equity component and provide\nlimited gold price protection during the initial ramp-up year of production.\nManagement estimates that purchasing gold put options for approximately 40,000\nounces of gold at a price of US$750/ounce will meet the price protection\nrequirements. This represents price protections on about 35% of the initial\nyear's estimated production of 113,000 ounces. No forward sales or other forms\nof fixed delivery obligations are anticipated under current market conditions.\n\n\nThe approved debt facility is slightly smaller than the US$70 million\nanticipated at the time HVB was mandated. Management evaluated the additional\ncosts and risks associated with a recently requested hedging program that\nwould have been required by the bank to extend the facility above US$62.5\nmillion and concluded it was in the best interest of the Company's\nshareholders to limit the size of the facility to the approved amount.\n\n\nEdward Dowling, President and CEO of Anatolia stated, "Receiving HVB's\napproval for this fully underwritten Debt Facility is excellent news and an\nextraordinary financial milestone for Anatolia. This speaks to the highly\ncompelling economic potential at Copler. We are very pleased with HVB's\npartnership to arrange this f...